tv Business Live BBC News December 24, 2016 2:30am-3:01am GMT
on occupied palestinian land. israel's traditional ally, the united states, abstained, saying it wanted to signal its backing for the creation of a palestinian state as part of a future peace agreement. italian police have shot dead anis amri, the man suspected of carrying out the attack on a christmas market in berlin. amri was killed in a shootout in a milan suburb, when he was stopped for a routine identity check early on friday. the star wars actress carrie fisher has suffered a heart attack on a flight from london to los angeles. she is now thought to be in a stable condition. the 60—year—old had just completed a tour to promote her new autobiography. now it is time for business live‘s review of 2016. this is business live from bbc news.
as 2016 draws to a close, we are going to look back on a year which featured two events which will shape the global economy for decades to come. welcome to business live‘s review of 2016. yep, this year saw the uk take that momentous decision to leave the european union. we are going to take a look at what lies in store for the next 12 months. and he did it. the billionaire businessman donald trump wins the race for the white house. he has made some bold announcements, what was it all talk and no action? and of course, it has been a turbulent year for the global market. 0il been a turbulent year for the global market. oil prices hit that historic low. there is light at the end of the tunnel. and of course, following
a landmark deal between members of the opec countries. and exploding phones, driverless cars and virtual reality. it has been an eventful 12 months in the world of tech but what can we look forward to in 2017? we will speak to our resident gadget guru. and indeed, a very warm welcome to a very special edition of business live. this year saw two of the biggest political results of the decade, as the recent trend towards globalisation kind of took a step back. there are now dark clouds of uncertainty hanging over two of the world's biggest economies, europe and the united states. so let's start by taking a look back at what happened following the uk's decision to leave the european union. tonight at10pm, to leave the european union. tonight at 10pm, the voters decide that after four decades it is time for britain to leave the european union. ido britain to leave the european union.
i do not think it would be right for me to try to be the captain that steers our country to its next destination. across asia today we have seen shares fall on the major markets, like japan's nikkei, down more than 7%. now look what happened, it tumbled down to levels not seen since the 1980s. many people in the financial markets, caught perhaps unawa res people in the financial markets, caught perhaps unawares by this decision. brexit means brexit, and we are going to make a success of it. it is a victory against the big merchant banks, against the big businesses, and against big politics. at the end of the day, jamie dunn, jp morgan, gold—medallist goldman sachs, have a good holiday. because i will give you a clue guys, you will be back. we arejoined by you a clue guys, you will be back. we are joined by economics editor, ahmed. we thought brexit back in the summer. ahmed. we thought brexit back in the summer. we are looking ahead to 2017. where do we stand in terms of
uk negotiations? every thing looks so uk negotiations? every thing looks so uncertain, doesn't it?|j uk negotiations? every thing looks so uncertain, doesn't it? ithink the phoney war will come to an end. obviously britain voted to leave the european union in june, obviously britain voted to leave the european union injune, and actually the practicalities of that will start next year. so the british government wants to spark what is called article 50, that starts the process of exit, by the end of march. that is a two you process, so that process should be completed, we think, by 2019. | that process should be completed, we think, by 2019. i think their attentions on both sides. in britain there are tensions between those who wa nt there are tensions between those who want what is called a hired brexit, fully out of the single market, out of the customs union, able to sign trade deals around the world itself, with no reference to the european union, and those that want a softer brexit. still having preferential access to the single market, possibly still in the customs union. that is attention on one side. on the european side, the 27 other member states, there are tensions
between those who want to ensure that britain doesn't get a better deal by coming out of the european union, politically unpalatable as thatis, union, politically unpalatable as that is, but also britain is the second largest economy in europe. they don't want to set up trade barriers such that the european economy itself suffers by losing the british market. and of course london, the city, is one of the global leading financial centres. europe needs the city to fund its own businesses. indeed it does. talking of financials, let's bring up talking of financials, let's bring up the motherboard, because i want to talk about that. we can bring it up, because i want to talk about the ftse and the pound. this is how they ended as of the 20 —— 21st of december. everyone talked about how if there was a vote for brexit we would see that pound plunge. exactly, investors would think that assets in the uk may be less valuable in the future so that money would be better employed on the european continent, and frankly in
america, and so the pound has fallen in value. i think what is interesting, and maybe slightly more surprising, is how good equities have been and the markets have been. i think have been and the markets have been. ithink in have been and the markets have been. i think in a way although brexit is incredibly important, politically and economically, the fundamentals haven't changed that much yet. and so haven't changed that much yet. and so equities are still very attractive, because of the hyper low interest rates, very loose monetary policy, no signal yet from britain, really. the central bank in the uk 01’ really. the central bank in the uk or the central bank in europe, that interest rates are going to rise any time soon, and certainly not quickly. so the equities run has been very powerful. of course, a lot of those equities in the ftse, the london market, are companies that are global. the profits are in dollars, and so as sterling falls, their profits actually... yes, their actual profits are then sparked upwards. so you get to a situation where those equities are doing rather well. so you have this sort of clash, equities positive, sterling having a tough time. you
touched on europe, the european project, how is it looking going into 2017? again, brexit is important, but i wouldn't suggest it is the most important thing going on in europe in 2017. you have elections in the netherlands, you have elections in france, you have elections in germany, and each of those elections will be a big test about the kind of europe that the voters in europe want. a reformed europe, they still want higher levels of unemployment, problems with growth, what types of europe will people who support the project, when those elections, or will people who want to rip up the project and cause more tension in europe and possibly split up the european union, will they went? is going to bea union, will they went? is going to be a fascinating year. we are going to wrap it up, but let's put the cards on the table. could we see a european shock like we have seen brexit, and the election of donald trump? all the polls, i know we have to be very careful, all the polls suggest not, but at the end of 2017, what might be described as the
establishment parties have read... put themselves back at the centre of europe. the european project is incredibly important to the european governments, at the end of 2017, at the polls suggest, that they will look more victorious than those who wa nt to look more victorious than those who want to break up the european union. one thing we learnt this year was don't listen to the polls! thank you for your time this year, happy new year. thank you, and to you. the other uk's decision to leave the european union certainly surprised the markets but investors didn't have to wait long for the next upset. he did it, the billionaire businessman donald trump swept to power in certainly one of the most divisive political campaigns in living memory. that's take a look back at some of those highlights. right now 92 million americans are on the sideline, outside of the workforce, and they are not a part of our economy. it is a silent nation of jobless of our economy. it is a silent nation ofjobless americans. of our economy. it is a silent nation of jobless americans. donald was one of the people who rooted the
housing crisis. he said back in 2006, gee, i hope it does collapse because then i can go in and buy some and makes money. well, it did collapse. that is core business. 9 million people. we will build the wall, 100%, and mexico will be paying for the wall. just imagine how many more automobile jobs will be lost if the tpp is actually approved. it will be catastrophic. we can't continue to allow china to rape our country, and that is what they are doing. donaldj rape our country, and that is what they are doing. donald] trump, the billionaire property developer with no previous experience of public office, is the 45th president of the united states. companies are not going to leave the united states any more, without consequence. it is not going to happen. it's not going to
happen. our number one priority is going to be the economy, getting back to 324% growth, we believe that is very sustainable, and focus on things for the american worker. that is absolutely a priority. nice, thunderous music there. i love it, i love the drama. a former white house adviser is here to add to the drama. and pippa, you did it. you picked brexit and he picked trump. when you wa nt to brexit and he picked trump. when you want to talk about the economics, trump's vision for the economy. this is what we have been hearing day in and out over the last couple of weeks. the team that he is building, what do you make of it? last one was mr navarro, who wrote one of his
books, death by china. yes, exactly. one thing that is interesting, here's picking people with very different points of view. they will have a cabinet which actually argues, which may not be a bad thing. they are going to have debates and proper punch—ups about what is the right direction to go. so that is one thing. second thing, the establishment is very upset about all these new people, because they are not. the electorate said they are not. the electorate said they want the establishment out, i wa nt they want the establishment out, i want something new in, something that looks after my interest more. that is what i think they are going to deliver. it is kind of... i think someone to deliver. it is kind of... i think someone described it as bonfire of the agencies. trump has been brought into literally burn the house down and start again, reconstruct this thing, and washington was overgrown in many ways. so will they be accidents along the way? look, every president makes mistakes, so we are going to see those for sure. but on the other hand, the upside here may be greater than people expect. just because they don't like him
personally, but the markets are going to like his policies. we have seen going to like his policies. we have seen that with the dow, haven't we? the wild card, though, is straight and the trade policy, and whether thatis and the trade policy, and whether that is going to harm growth in the future. what is your take on that? so again, i suspect, i don't know, these are my personal views, but i think that there is a lot of bluster about trade policy. but in the end, what they want to do is sell more american goods, have better quality imports, so the end goal is to actually have trade, theyjust won't use that word. we will hear free trade less and less. we will hear more things like smart business. but does it really mean something profoundly different? maybe not. because they are saying you can't see the us as an island, it can't just act as an island. it has to trade in the world. it does, although to be fair, less than 2% of us gdp depends on exports, so as a nation we are incredibly lucky. we
can be an engine even if the rest of the world is in growing very well. traders are relatively small part our economy, compared to most others. so they do something to keep in mind. good to talk to you, pippa. thank you very much indeed. still to come, exploding phones, driverless cars, and virtual reality. it has all been a very eventful 12 months in the world of tech. but what can we look forward to in 2017? we are going to find out, we will speak to the group, rory cellan—jones. you are watching is this live from bbc news. throughout the show we have been hearing about how the events of 2016 are set to shake the business landscape for years to come. 2017 is set to be a busy year. the bbc‘s theo leggatt has a timeline of key events in the next 12 months. in january, president—elect donald trump enters the white house. onlookers will be keen to see if it follows through with plans to restrict trade and inject hundreds
of billions of dollars into the us economy. fast forward a couple of months and we will see the first big development in the brexit story. the uk prime minister says she will trigger article 50 by the end of march. this is when britain can start formal negotiations with the european union, and we may begin to see what the new relationship could look like in years to come. this is of course crucial to the future of the eu project. france is one other country which we —— will be paying close attention. the far right candidate marine le pen is riding high on nt europe sentiment which is sweeping the globe. she is a staunch eurosceptic so there could be bad news for brussels of shias voted into power. in germany it is a similar picture. recent events have seen similar picture. recent events have seen chancellor angela merkel come underfire for seen chancellor angela merkel come under fire for her opendoor migrant policy. the public could go to the polls as early as august 27. the
german leader has seen a steady decline in her popularity ratings over the last few years. 2016 is anything to go by, the next 12 months could be very interesting indeed. looking at the markets, and starting the stocks in europe. the sterling down 16%, pretty much expected. but the ftse is up some 13%. the european market gained. not a bad year. this is up until december the 20th. you call it the quid, i call it this way. in the us, in terms of the dowjones, a rise of around 15% this year —— the screen. anticipating that donald trump may follow through with his trillion dollar spending plan. it could provide a boost to many major american companies, let's admit it, they need it. it is borrow and build, but maybe they don't need to borrow. many investors may throw
their money into infrastructure. you are watching business live, review 2016. events of the past 12 months have made for a turbulent yearin months have made for a turbulent year in global markets. the price of the black stuff, oil, was already added to point for a decade. this had investors wondering whether the market could get any lower. in january, eranga return to international markets following the lifting of western sanctions, and crude fell below $20 per barrel —— iran. it proved to be short lived. the market rallied some of that oversupply the market rallied some of that oversu pply left the market rallied some of that oversupply left the market, if you will. in september, some of the world's leading oil—producing nations managed to reach a landmark agreement to the first time in november in over eight years. members of opec struck a deal to limit production. initially, the market had it doubts that the deal
we re market had it doubts that the deal were told, but after iran and saudi arabia agreed to resolve their differences, the oil price surged once more. we can say to a senior royal and gas analyst. a good aussie institution. that is the key. what we just institution. that is the key. what wejust said there, institution. that is the key. what we just said there, we have all agreed, but with a stick to that? complaints is always key. they have not done it for awhile. —— compliance. what encourages the market is that the core countries of opec, the gulf countries like arabia, uae, wait, the make up more than half, and they will comply. they have to comply given their budget constraints —— to wait. we think most of the rest of the countries will comply to some degree. many countries tempted by the slightly higher oil price to increase supply and make more money. it has been hard going for countries including south america in some
african countries. yes, and also libya and nigeria, coming out of a depressed position. they will be allowed to increase. there will be a lot of complaints. when we saw that announcement, in the lead up, they have finally made this agreement, but they cut record levels. rush was producing more than 11 million a day, something like that. —— brush. will it make a huge difference? with demand increasing, lower prices equals that it is cheaper, so demand growth is good. how long will that last now prices are rising? unless there is a recession in the west, we will see a decent amount of growth. it will increase the wiggle room some of the countries have. yes, the us is also producing a lot at the moment. the worry is producing even more. it will be crackers when i
come into it because of the price, making money. —— a fracas. come into it because of the price, making money. -- a fracas. they can switch it on pretty quickly? there isa switch it on pretty quickly? there is a finite limit to that. with a bit of compliance and demand and great, i think the oil price will reach $60. next you? it is $55 now, so reach $60. next you? it is $55 now, so we're not far away —— nest you. brent crude up in 2016. what are your predictions that 2017? as i say, $60. no $100 mark? unless there isa say, $60. no $100 mark? unless there is a cataclysm somewhere. we have had that before. we are not forecasting that. and nice and smooth path back up to $70. we will have you back next year to work out if you were right. we have put you on the spot. thank you forjoining us. on the spot. thank you forjoining us. ina on the spot. thank you forjoining us. in a moment we will be talking
tech. i love talking tech. you like talking in general. he is taking photos of us. then he will put it on social media. we will look at the yearin social media. we will look at the year in social media. they are daft people in our office playing it. majorly disappointed, it changed my life for a week and there was gone. best out this year. —— then it was
gone. sitting in scotland says i would never use a driverless taxi or vehicle, and in india, iwould be scared to sit in one in india because it might malfunction. i tweeted this about five o'clock this morning and had nothing but a short and sharp response from viewers about this one. it has been an interesting year. a sally appearance. 2016 has been an eventful year in the world of tech. we have seen travellers taxes
picking up passengers for the first time. and of course the war between samsung and apple reached explosive new heights, i see what they did there. boom. good to see you. you have bought your gadgets in. see that picture? is this the future? we said 2016 was going to be the year of virtual reality, when we saw a lot of lodges. we have not seen the mass take—up yet. we are now seeing the emergence of cheaper forms of it. this is an example, a cheap headset in which you put a mobile phone. much easier to get to grips with. not as good as things like the oculus rift, but obviously very cheap. what does it do? you are being transported into new worlds. my experience from this... i like the world i'm living in! my experience is the first time somebody does this, i did it with
family members, with an ageing pa re nt family members, with an ageing parent the other day. did you? they are quite excited by it. my question is whether that will last. the first expense is great and then you do begin to say, yes, but what is it for? it is all about big companies applying it to something. constructive... i'm seeing more of augmented reality mode, putting virtual objects and a real word. a great example was pokemon go, wandering around with friends catching pokemon. getting arrested for wandering around with friends. we will see more of that next year. —— friends. and then is a hollow bones that puts objects on the real world. -- lens. voice control! be quiet. it works! amazing. happy to help. you have spoiled my demo. 0k, google. who is aaron said iraq?
aaron heslehurst is a tv presenter. and then you can ask questions like how all dizzy? we will not go on that. -- how old is he? he celebrated his 70th birthday this year. laughter we saw the amazon echo, voice controlled speaker, take off. then we have the google rival. devices you talk to, voice becoming a new interface. we have seen in mobile phones. this is a google mobile phones. this is a google mobile phone using the smart system. you also have siri. those are becoming so also have siri. those are becoming so much more sophisticated. so much smarter. for instant, when i ask,
who is someone, a good question is how all dizzy? that is not work. are people buying them? they are. these voice controlled speakers are out there. these are things that are out there. these are things that are out there. they are in the environment. voice control is becoming a thing. this is the stuff when we were younger we watch the science fiction films and there would be on a spaceship. what amazes me is how blase we are about it. in star trek, there were devices where you could speak one language and it will come out in another. we have them. what about the driverless cars. there is about the driverless cars. there is a lot of controversy? it feeds into the same thing, more intelligence being built into allsorts of devices. we have come a long way with driverless technology and i am expecting more demos of that. the big show in las vegas injanuary.
that sort of technology leads us into the internet of things. yes. i have a bunch of devices, all connected to the internet. that is a smart doorbell with a camera on it. it will identify who has come to your door and you can let the mean by smart phone. smart lighting that you can control —— let them in. i just bought this. jones, jones, jones! he wanted a drone. lots more up jones! he wanted a drone. lots more up in the sky. ——.... hey, siri, turn the christmas lights on. thank you forjoining us. that is it from business live. thank you for watching. see you in the new year. take care. hello again. yesterday's weather was all about storm barbara, the second named storm for the season. it has been a quiet winter season so far. there is barbara, the curl of cloud
working into the uk. the strongest winds are in the scottish islands. reports of power supply problems here. transport was disrupted as well. into the atlantic, our next storm system is forming. this is connor. again, it will be bringing strong winds to the north of scotland, especially for boxing day. the weather watchers were out enjoying those strong winds. large, crashing winds being driven out into the bay in lerwick by those strong winds. the winds will continue to blow, with plenty of blustery showers. that is how we start the day. showers falling wintry across the higher ground in scotland, with snow mainly above 200 metres elevation, perhaps 100 metres at times. it is mainly in the hills where we will see that. because of that, we could have icy conditions on some of the roads first thing. england and wales, a lot of dry weather to start the day. a few isolated showers working into north—west england and across wales as well first thing in the morning. the further south and east you are, the better chance you have of starting the day on a dry note with a fair bit of sunshine. but it will be quite
breezy for all of us. through the rest of the day, those gale—force winds will continue to bring plenty of showers in. again, they will be falling as snow up in the hills of scotland. a more general spell of rain moving into northern ireland late in the day. turning damp here. for england and wales, a mainly dry day with sunny spells. temperatures between 8—11 degrees. colder than that for northern ireland and scotland. the cold air will be behind us to start christmas day. mild air is on the way. these are the temperatures first thing on the big day itself. christmas day, quite windy. a lot of cloud around. this cold front will push south during the day bringing wet weather for northern ireland, the north of england, and north wales. to the south of the front, still quite mild. temperatures could reach 111—15 in the mildest spots. further north, cold air moving in. that means late in the day, some of us could see a white christmas. the chance of getting a bit of snow in the hills of northern scotland. for boxing day, remember connor? i showed you that on the satellite picture.
it is bringing strong winds to the northern isles of scotland, where we have an amber met office weather warning in force. 80 mph gusts a possibility. gale—force gusts for the northern half of the uk. further south, quite windy. a lot of dry weather with sunshine. temperatures between 7—8. later next week, the weather should calm down, and we will see a return of some night—time frosts. welcome to bbc news, broadcasting to viewers in north america and around the globe. i'm lebo diseko. our top stories: the un security council passes a resolution demanding a halt to israeli settlement—building on occupied palestinian land. the us abstains from the vote. anis amri, the man suspected of carrying out the attack on a berlin christmas market, dies in a shootout in italy. putin faces the world's media, and says he is not worried by donald trump's talk of a new arms race. the star wars actress carrie fisher suffers a heart attack on a flight to los angeles, but is said to be stable.